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Mental Models · 38

Card 1 of 38: Inversion

Canonical · Mental Models

Inversion

Jacobi's advice was 'invert, always invert.' Instead of asking how to succeed, ask how to guarantee failure — then don't do those things. It's often easier to identify what will kill you than what will save you.

Carl Jacobi / Charlie Munger · 1985 swipe · next
Canonical · Mental Models

Second-Order Thinking

First-order thinking evaluates only the immediate effect: this decision will do X. Second-order thinking asks what happens after X — how others respond, what incentives shift, what second effects follow. Simple decisions often look different when you trace them two steps out.

Howard Marks · 2011
Canonical · Mental Models

Circle of Competence

Everyone has a domain in which they can reasonably assess risk and reward — their circle of competence. Outside it, they're guessing. Buffett's rule: know where your circle ends, and don't step over the line just because opportunities look interesting.

Warren Buffett · 1996
Canonical · Mental Models

Hanlon's Razor

When something bad happens because of someone else's action, our first instinct is to assume they meant it. Hanlon's Razor suggests trying the simpler explanation first: they were busy, careless, tired, or uninformed. Most cruelty is closer to indifference than to intention.

Robert J. Hanlon · 1980
Canonical · Mental Models

Mental Models: The Best Way to Make Intelligent Decisions

A mental model is a simplified representation of how something works, used to understand, predict, and decide; the 'latticework' idea is that no single model from any one field is sufficient on its own — economics alone, or psychology alone, or physics alone will each miss something a situation depends on. Reliable judgment comes from holding a cross-disciplinary set of models and knowing which one(s) actually apply to the specific situation in front of you.

Farnam Street (Shane Parrish) · 2015
Canonical · Mental Models

The Feynman Technique: The Ultimate Guide to Learning Anything Faster

The technique has four steps: (1) pick a concept and write down everything you currently know about it; (2) try to explain it in words simple enough for a 12-year-old to follow; (3) go back to the source material wherever your explanation breaks down or gets vague, and refine it; (4) test your simplified explanation by actually teaching it to someone else without notes.

Farnam Street (Shane Parrish), after Richard Feynman · 2012
Canonical · Mental Models

Proximate vs Root Causes: Keep Digging to Find the Answer

A proximate cause is the immediate, most obvious trigger of an event (e.g., 'I lost my job because the company had financial difficulties'); a root cause is the deeper, underlying condition that actually explains why the proximate cause was able to happen at all (e.g., 'I hadn't kept my skills current, so I wasn't valuable enough to retain'). Techniques like the '5 Whys' (repeatedly asking why, using each answer as the basis for the next question) and Socratic questioning are used to dig from the proximate cause down to the root.

Farnam Street (Shane Parrish) · 2017
Canonical · Mental Models

The Butterfly Effect: How Tiny Actions Unleash Global Consequences

The butterfly effect describes how, in complex systems (weather, economies, geopolitics), extremely small differences in initial conditions can lead to vastly different outcomes over time, because errors and small effects compound and amplify through feedback rather than staying proportionally small — meaning precise long-range prediction of such systems is fundamentally impossible, not just difficult with current tools.

Farnam Street (Shane Parrish) · 2017
Canonical · Mental Models

Turning Pro: The Difference Between Amateurs and Professionals

The piece lists dozens of paired contrasts between amateur and professional mindsets — e.g., amateurs focus on the outcome, professionals focus on the process; amateurs rely on willpower, professionals build environments that make desired behavior the default; amateurs want to win the moment, professionals want to win the decade — arguing these differences, not raw talent, explain who consistently outperforms.

Farnam Street (Shane Parrish) · 2017
Canonical · Mental Models

Avoiding Stupidity is Easier than Seeking Brilliance

The core distinction is between a 'Winner's Game,' where the outcome is determined by the skillful actions of the winner (professional tennis), and a 'Loser's Game,' where the outcome is determined mainly by the mistakes of the loser (amateur tennis, and much of everyday decision-making) — meaning the right strategy depends entirely on which kind of game you're actually playing, not which one you wish you were playing.

Farnam Street (Shane Parrish) · 2014